《外贸英语函电Business English Correspondencedoc》.pptVIP

外 贸 英 语 函 电 Business English Correspondence Terms of Payment Introduction In the course of study of this chapter, the students will be acquainted with the various modes of payment and settlement of accounts and particularly those customarily used in our import and export organizations. International Payments International payments are financial activities conducted among different countries.  Paying for goods supplied in domestic trade is a fairly simple matter because payment can be made either in advance or within a reasonable short period after delivery. Payment is much more complicated in international trade. The sellers must sometimes wait several months for their money or the buyers may need to pay several months before they even see their goods. Clearly, both the sellers and buyers run certain risks of non-payment or non-delivery. So the appointment of agents for trust purpose becomes necessary. This function is usually entrusted to banks, which have branches or correspondent banks in most towns and cities overseas. Instruments of Payment in International Trade There are three major instruments of payment used in international trade： (1) cheques (seldom used) (2) promissory notes. (more popular) (3) bills of exchange /draft ( the most popular) Modes of Payment in International Trade There are three major modes of payment in international trade: Remittance, Collection Letter of credit. Remittance and Collection commercial credit offered by companies.  Letter of Credit banker’s credit offered by banks. Remittance  Mail Transfer (M/T), Telegraphic Transfer (T/T) Demand Draft (D/D). Collection Documents against Payment (D/P) Documents against Acceptance (D/A). While payment is sometimes made by Remittance and Collection, the most generally used method of payment is the Letter of Credit.  As far as the seller’s benefit is concerned, Letter of Credit is better than D/P. D/P at sight is better than D/P after sight, whereas D/P is